Section 130 Property and Conveyancing Law of the Western Region of Nigeria 1959

Section 130 of the Property and Conveyancing Law of the Western Region of Nigeria 1959 is about Amount and application of insurance money. It provides as follows:

(1) The amount of an insurance effected by a mortgagee against loss or damage
by fire under the power in that behalf conferred by this Law shall not exceed the
amount specified in the mortgage deed, or, if no amount is therein specified, twothird parts of the amount that would be required, in case of total destruction, to
restore the property insured.

(2) An insurance shall not, under the power conferred by this Law, be effected by a
mortgagee in any of the following cases (namely):
(i) Where there is a declaration in the mortgage deed that no insurance is required;

(ii) Where an insurance is kept up by or on behalf of the mortgagor in accordance
with the mortgage deed;

(iii) Where the mortgage deed contains no stipulation respecting insurance, and an
insurance is kept up by or on behalf of the mortgagor with the consent of the
mortgagee to the amount to which the mortgagee is by this Law authorised to insure.

(3) All money received on an insurance of mortgaged property against loss or
damage by fire or otherwise effected under this Law, or any enactment replaced by
this Law, or on an insurance for the maintenance of which the mortgagor is liable
under mortgage deed, shall, if the mortgagee so requires, be applied by the
mortgagor in making good the loss or damage in respect of which the money is
received.

(4) Without prejudice to any obligation to the contrary imposed by law, or by special
contract, a mortgagee may require that all money received on an insurance of
mortgaged property against loss or damage by fire or otherwise effected under this
Law, or any enactment replaced by this Law, or on an insurance for the maintenance of which the mortgagor is liable under the mortgage deed, be applied in or towards the discharge of the mortgage money.